- CFA Exams
- CFA Exam: Level II 2021
- Study Session 15. Alternative Investments
- Reading 39. Private Real Estate Investments
- Subject 4. The income valuation approach
CFA Practice Question
Which relationship is always true (assume the growth is positive)?
B. Cap rate > growth rate.
C. Discount rate > cap rate.
A. Cap rate > discount rate.
B. Cap rate > growth rate.
C. Discount rate > cap rate.
Correct Answer: C
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